New Sage Energy Corp.

New Sage Energy Corp.

September 21, 2010 08:30 ET

New Sage Energy Announces Successful Completion of Peltier #2 Well

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2010) - New Sage Energy Corp (TSX VENTURE:NSG) ("New Sage") is pleased to announce the completion of the Valentine Field, Peltier #2 well. This is the third development project between New Sage and Gulf South Operators of New Orleans, Louisiana. New Sage has a 10% working interest in the well and the project.

Peltier #2 was drilled within the well known Valentine Field and targeted approximately 430,000 barrels of oil from as many as six zones. The well encountered six potentially productive zones beginning with the R-sand, with no associated oil or water. It was noted during the prospect review that individual sands, had significant oil production (between 100,000 and 400,000 bbls oil) from several wells in the Valentine field.

The well is expected to be tied into a local pipeline and put into production. The gas cap within the currently completed zone will be produced and production from the well is anticipated to change from gas to oil in a relatively short time following hook-up of the well.

"We are very encouraged by the initial results to date on the Peltier #2 well, which continues our track record of success with GSO" said John Carlesso President and CEO. "Additional results are expected shortly following the testing of the sands that had oil showing during the initial drilling phase". 

Peltier #2 well was completed at a depth of 8,500', production casing was perforated between 8486' and 8497' across the R-sand that had a minimum of five feet of net pay characterized by an average of 25% effective porosity with gas and condensate detection and low water saturations (20 to 24%) on side wall core analyses. Successive zones include the R-sand upper (4'), O and O-2 sands (10'), N-sand (8') and M-sand (5') that have moderate to high porosities indicated on logs with condensate and oil saturations detected on side wall core analyses. These sands are expected to produce condensate initially, followed by oil once they are completed and put into production.

Reservoirs within Louisiana are very young and porous with moderate to high permeability, which translates into reservoirs that produce gas, condensate and oil very quickly. Multiple zone completions are required for each well, which can provide the benefit of higher reserves per well and final net revenues. An operator in the Gulf Coast and its working interest owners can achieve pay-out of the well or project with a high rate of return within a relatively short time compared to other conventional oil and gas plays within older sedimentary basins because these reservoirs are not as prolific.

New Sage continues to look at additional opportunities in the US Gulf States and across North America.

About New Sage

New Sage is a Canadian oil and gas exploration and development company with a focus on opportunities in the US Gulf States region and South America. The company is building a portfolio of production, through exploration and development opportunities with established joint venture partners.

Forward-Looking Statements: This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by New Sage. The forward-looking statements or information contained in this news release are made as of the date hereof and New Sage does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

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